India’s food services industry is set for significant growth, with the market expected to reach $150 billion by FY31, according to a report by Redseer Consulting. The sector is projected to expand from $90 billion in FY26, supported by increasing consumer spending, changing eating habits, demand for convenience, and the rapid rise of online food delivery platforms.
The report highlights that India’s food services market has witnessed strong growth over the past five years, increasing from $56 billion in FY21 to nearly $90 billion in FY26. This expansion has been driven by evolving consumer preferences, greater acceptance of dining out, and the growing use of digital platforms for ordering meals.
Online food delivery is expected to become an increasingly important part of the industry. Its contribution to the overall food services market is projected to rise from 11% in FY26 to 18% by FY31, reflecting the shift toward digital ordering and technology-enabled food experiences. Metro cities have seen a sharp increase in online food transactions, rising from around 300 million orders in FY21 to approximately 1.06 billion orders in FY26.
Organized food service companies are also gaining momentum as consumers increasingly look for consistent quality, convenience, and trusted brands. These businesses currently represent around 45-50% of the market and are expected to grow faster than smaller unorganized players in the coming years.
The report points out that categories such as snacks, desserts, beverages, shakes, juices, cakes, premium tea, and coffee are witnessing strong demand due to their suitability for online delivery models. These segments are expected to offer significant growth opportunities for restaurants, cloud kitchens, and food technology companies.
Despite the presence of nearly 1,000-1,500 organized food service businesses in India, only a small number have annual revenues exceeding $56.58 million. This indicates considerable potential for expansion, consolidation, and the emergence of larger food brands in the future.
Rising disposable incomes, increasing digital adoption, and the growth of organized dining experiences are expected to remain key factors supporting the sector’s long-term development. The expansion of the food services industry is also likely to create more employment opportunities, encourage entrepreneurship, and strengthen India’s position as one of the world’s fastest-growing consumer markets.
